The Research On Funds Centralized Management Of M Group

With the transformation of the economic system and the reform of government functions,our group companies are gradually developing into an important economic organization which is trans-regional and cross-industry. Capital management is a important part of management in group of enterprises.with the growing size of the group, there is a lot of money management issues, it will be an obstacle to the development of enterprises. Select the appropriate money management mode, and in this mode, the success of a centralized fund management will help enterprises to improve capital efficiency and enhance the Group’s overall strength.M group is founded in 2003.It is engaged in commercial concrete development, production,marketing and transportation business. From acounts receivable, inventory,financial cost of M Group’s cash management, idle funds, loan status quo angles, the group’s capital management’s issues are listed : low utilization of funds group,the high cost of Group Finance, Group of idle funds, savings and loan serious double high, funds can not be used.Based on the research background M Group, his paper analyzed the current situation of M Group’s centralized management of funds. Elaborate the M Group’s financial management problems in detail. And analyze the specific reasons for these problems. Six kinds of centralized management of funds are compared. Combined with the M Group’s problems,the paper suggested M Group should chose the cash pool funds centralized management model. The select strengthen financial management, improve capital efficiency, and enhance the Group’s own strength. In the cash pool funds centralized management, Group headquarters can understanding financial flows for each account in time, and strengthen the management of funds. Extra money in account could be put together, which can be used to additional investment activity. That can increase the overall revenue of the firm. When the funds are idle, the portion of the funds may get higher deposit interest in the form of large deposits of agreement from the bank. And it dies not affecting the business demand for the use of funds. This paper describes six centralized management of funds, we recommend that M Group has chosen the cash pool funds centralized management model. It elaborated the application of cash pool management in the M group in detail. A series of safeguards for the smooth implementation of the cash pool funds centralized management model which has provided a guarantee are proposed in the paper. The solution solve the M Group’s capital management issues and promote the development of enterprises. It also provides a reference to the existence of other similar funds management of the Group companies.